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FACTBOX - Pentagon budget plan hits ships and planes

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A sign at the Department of Defense is pictured at the Pentagon in Washington, March 25, 2010. REUTERS/Hyungwon Kang/Files

A sign at the Department of Defense is pictured at the Pentagon in Washington, March 25, 2010.

Credit: Reuters/Hyungwon Kang/Files

Fri Jan 27, 2012 6:41am IST

REUTERS - The U.S. Defense Department outlined fiscal 2013 budget cuts that would slow warship building, scrap 10 percent of fighter-jet squadrons and cut nearly 100,000 ground troops in the coming year.

Among the programs that would be slowed, reduced or ended if the plans are approved by the U.S. Congress:

- Purchases of Lockheed Martin's (LMT.N) F-35 Joint Strike Fighter would be slowed to give more time for testing and design change. But the Pentagon said it stood by plans to buy 2,443 over time. Final assembly of the aircraft is in Fort Worth, Texas.

- Northrop Grumman's (NOC.N) Global Hawk Block 30 long-range surveillance drone would be canceled.

- Eight fewer Joint High Speed Vessels would be purchased in the five-year spending plan. The warship is built in Mobile, Alabama, by Austal USA (ASB.AX) in a partnership with General Dynamics (GD.N).

- Development of a new ballistic missile submarine would be delayed two years. General Dynamics and Huntington Ingalls Industries (HII.N) build U.S. nuclear-powered submarines.

- The number of shore-hugging Littoral Combat Ships would be reduced by two in the five-year spending plan. Different versions of the ship are built by Lockheed Martin and Austal/General Dynamics.

- The Defense Department will "divest" itself of 38 C-27J cargo aircraft built. The program, led by L-3 Communications Holdings (LLL.N), involves Alenia Aeronautica, a unit of Italy's Finmeccanica Group (SIFI.MI).

- Spending on "deployable regional ballistic missile defense" would be slowed in what could be a blow to Raytheon (RTN.N) and Lockheed.

Among programs that would be boosted under the new spending plan:

- Cyberwarfare capabilities, both defensive and offensive.

- Unmanned air systems such as those built by General Atomics

- Advanced intelligence, surveillance and reconnaissance capabilities such as those built by Lockheed, Boeing (BA.N) and Northrop Grumman.

(Reporting By Jim Wolf)

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